Coupang, Inc. · NYSE:CPNG
Coupang — Q4 2024 Earnings Presentation
28 slides from Coupang's earnings presentation, Feb 25, 2025
Slide 1: Q4 2024 Financial Results
coupang Q4 2024 Financial Results February 25, 2025
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation may contain statements that may be deemed to be "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Ex
Slide 3: Common Stock
Common Stock 1.4% YoY Dilution 1,854M 1,880M / / / Q4 23 Qi 24 Q2 24 Q3 24 Q4 24 ™ Outstanding Common Stock Note: Dilution represents the change in the total of outstanding common stock and outstanding equity-based awards. = Outstanding Equity-based Awards coupang
Slide 4: Older cohorts still growing fast, newer cohorts growing faster
Older cohorts still growing fast, newer cohorts growing faster Spend per customer by cohort in Korea Each cohort starting at higher spend/customer Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 2019 ——2020 ——2021 —=2022 —=2023 -e-2024 Note: Spend per customer equates to total gross spending per customer,
Slide 5: Total Net Revenues
Total Net Revenues Up 21% YoY, 14% excl. Farfetch Up 28% YoY FX-neutral, 21% excl. Farfetch $8.0B : ; ; : Q4 23 Q124 Q2 24 Q3 24 Q4 24 Note: At the end of January 2024, we completed the acquisition of the assets of Farfetch. As a result, Farfetch is now included in our consolidated results and in ou
Slide 6: Total Net Revenues - Full Year
Total Net Revenues - Full Year Up 24% YoY, 17% excl. Farfetch Up 29% YoY FX-neutral, 23% excl. Farfetch $30.3B —— $28.6B, excluding Farfetch $24.4B 2023 2024 coupang | 5
Slide 7: Gross Profit
Gross Profit Up 48% YoY GPM up 570 bps YoY, 330 bps excl. Farfetch & FC fire insurance gain $2.5B —— $2.2B, excluding Farfetch & FC fire insurance gain $1.7B 29.0%, excluding SS —— Farfetch & FC fire insurance gain 25.6% Q4 23 Qi24 Q224 Q3 24 a4 24 @ margin Note: @4 2024 gross profit includes Farfet
Slide 8: Net Income (loss) Attributable to Coupang Stockholders
Net Income (loss) Attributable to Coupang Stockholders Down $876M YoY $1.0B | $156M $77M, excluding losses of Farfetch & FC fire insurance gain Q423 Q1i24 Q2 24 Q3 24 Q4 24 Note: During Q4 2023 we recorded a non-recurring tax adjustment of $895 milion from changes in tax-related reserves, including
Slide 9: Gross Profit - Full Year
Gross Profit - Full Year Up 43% YoY GPM up 380 bps YoY $6.2B 25.4% __ $8.0B, excluding $8.8B Farfetch & FC fire insurance gain 29.2% Zi 28.0.%, excluding Farfetch & FC fire insurance gain 2023 @ margin 2024 Note: 2024 full year gross profit includes Farfetch gross profit of $713 million and the fulf
Slide 10: Adjusted EBITDA
Adjusted EBITDA Up $127M YoY 5.3% margin, up 80 bps YoY $421M — $39iM, excluding Farfetch $294M Ee —— 5.2%, excluding Farfetch 45% Q4 23 Qi24 Q2 24 Q3 24 Q4 24 @ margin Note: Adjusted EBITDA defined as net income (loss) excluding the effects of: depreciation and amortization, interest expense and in
Slide 11: Adjusted EBITDA - Full Year
Adjusted EBITDA - Full Year Up $301M YoY 4.5% margin, up 10 bps YoY 44B —— 9148, excluding $ Farfetch $1.1B 45% — 4.9%, excluding 4.4% : Farfetch 2023 2024 coupang | io
Slide 12: Operating Cash Flow and Free Cash Flow - Full Year
Operating Cash Flow - Full Year Free Cash Flow - Full Year Down $766M YoY Down $759M YoY $2.7B $1.9B $1.8B $1.0B 2023 2024 2023 2024 Note: The decline in 2024 full year operating and free cash flow is primarily due tocertain non-recurring working capital benefits in the prior year coupang | 1
Slide 13: Segment Results: Product Commerce - Net Revenue
Segment Results: Product Commerce - Net Revenue Net Revenue Net Revenue - Full Year Up 9% YoY Up 13% YoY UP 16% YoY F/X neutral UP 18% YoY F/X neutral $6.9B $26.7B $6.3B - ; i $23.6B Q4 23 Q124 Q2 24 Q3 24 Q424 2023 2024 coupang | 12
Slide 14: Segment Results: Product Commerce - Adj. EBITDA
Segment Results: Product Commerce - Adj. EBITDA Adj. EBITDA Up $95M YoY 7.8% margin, up 80 bps YoY $539M $444M 7.8% 71% Q4 23 Qi24 Q2 24 Q3 24 Q4 24 @ margin Adj. EBITDA - Full Year Up $467M YoY 7.5% margin, up 100 bps YoY $2.0B $1.5B 7.5% 6.5% 2023 2024 coupang | 13
Slide 15: Product Commerce Active Customers
Product Commerce Active Customers Up 10% YoY 22.8M ’ ; i ; - Q4 23 Q124 Q2 24 Q3 24 Q4 24 Note: Product Commerce Active Customers are the total of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the quarter. coupang | 4
Slide 16: Segment Results: Developing Offerings - Net Revenue
Segment Results: Developing Offerings - Net Revenue Net Revenue Net Revenue - Full Year Up 296% YoY Up 352% YoY Up 308% YoY F/X neutral Up 363% YoY F/X neutral $1.1B $3.6B P =i ; ; ; - a 23 Qi24 Q2 24 Q3 24 Q424 2023 2024 Note: @4 24 net revenue includes $471 million, and 2024 full year net revenue
Slide 17: Segment Results: Developing Offerings - Adj. EBITDA
Segment Results: Developing Offerings - Adj. EBITDA Adj. EBITDA Adj. EBITDA - Full Year Improved $32M YoY Down $165M YoY — BW BW Bhoooxkl 9)% (55.0)% (59.0)% 118M S(r18M) $(466M) $(150M) Q4 23 Q124 Q2 24 Q3 24 Q4 24 2023 @ margin Note: @4 24 adi. EBITDA includes $30 million, and 2024 full year adj.
Slide 18: Long-term Margin Opportunity
Long-term Margin Opportunity Year Ended December 31, Long-Term 2021 2022 2023 2024 VElSS3 Product Commerce 9 9 9 9 Adj. EBITDA margin (2.0) % 3.0% 65% 75% 10+% Consolidated (41) % 19% 44% 45% Adj. EBITDA margin Key long-term margin drivers: 3 Scaling accretive Efficiency and supply 1 offerings chain
Slide 19: Our Operating Tenets
Our Operating Tenets One, we exist to deliver new moments of wow for customers. Two, we don't start with what looks easy. We work backwards from imagining jaw-dropping customer experiences and we embrace the hard work required to challenge trade-offs that customers take for granted. Three, we will e
Slide 20: Appendix
ee) | Create a world | “How did | ever live without Coupang?” Appendix :
Slide 21: Total net revenues excluding Farfetch
Three Months Ended December 31, Year Ended December 31, (in millions) 2023 2024 2023 2024 Total net revenues $ 6,561 $ 7,965 $ 24,383 $ 30,268 Revenues of Farfetch — (471) — (1,658) Total net revenues excluding Farfetch $ 6,561 $ 7,494 $ 24,383 $ 28,610
Slide 22: Year over Year Growth, Constant Currency
Three Months Ended December 31, 2023 2024 Year over Year Growth Constant Constant Exchange As Currency Currency (in millions) As Reported As Reported Rate Effect Reported Basis Basis Consolidated Total net revenues $ 6,561 $ 7,965 $ 430 $ 8,395 21 % 28 % Revenues of Farfetch — (471) — (471) Total ne
Slide 23: Quarterly Net Income to Adjusted EBITDA Reconciliation
Three Months Ended December 31, September 30, December 31, (in millions) March 31, 2024 June 30, 2024 2023 2024 2024 Total net revenues $ 6,561 $ 7,114 $ 7,323 $ 7,866 $ 7,965 Net income (loss) attributable to Coupang shareholders 1,032 5 (77) 70 156 Net loss attributable to noncontrolling interests
Slide 24: Full Year Net Income to Adjusted EBITDA Reconciliation
Year Ended December 31, (in millions) 2023 2024 Total net revenues $ 24,383 $ 30,268 Net income attributable to Coupang shareholders 1,360 154 Net loss attributable to noncontrolling interests — (88) Net income 1,360 66 Net income margin 5.6 % 0.2 % Adjustments: Depreciation and amortization 275 433
Slide 25: Free Cash Flow Reconciliation
Year Ended December 31, (in millions) 2023 2024 Net cash provided by operating activities $ 2,652 $ 1,886 Adjustments: Purchases of land and buildings (374) (245) Purchases of equipment (522) (634) Total purchases of property and equipment (896) (879) Proceeds from sale of property and equipment 19
Slide 26: Non-GAAP Measure: Adjusted Net Income Attributable to Coupang Stockholders
Non-GAAP Measure: Net Income Attributable to Coupang Stockholders Excluding the Impact from the FC Fire Insurance Gain, and Adjusted Net Income Attributable to Coupang Stockholders Three Months Ended December 31, Year Ended December 31, (in millions) 2023 2024 2023 2024 Net income attributable to Co
Slide 27: Non-GAAP Measure: Adjusted Gross Profit Excluding Farfetch
Non-GAAP Measure: Gross Profit Excluding the Impact from the FC Fire Insurance Gain, and Adjusted Gross Profit Excluding Farfetch Three Months Ended December 31, Year Ended December 31, ye 2023 2024 2023 2024 (in millions) Gross profit $ 1,681 $ 2491 $ 6,190 $ 8,831 Adjustments: FC Fire insurance ga
Slide 28: Non-GAAP Measure: Adjusted EBITDA Excluding Farfetch
Non-GAAP Measure: Adjusted EBITDA Excluding Farfetch Three Months Ended December 31, Year Ended December 31, (in millions) 2023 2024 2023 2024 Adjusted EBITDA $ 294 $ 421 $ 1,074 $ 1,375 Adjusted EBITDA of Farfetch _ (30) _ 34 Adjusted EBITDA excluding Farfetch $ 294 $ 391 $ 1,074 $ 1,409 Adjusted E